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PovertyChapter 13 Section 3
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Family – group of 2 or more related peoples living in same housing unit
Household – all people living in the same housing unit
Poverty Threshold (poverty line) ◦ Income level below what is needed to support
family or household◦ Changes according to situations
Poverty
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Poverty Rate – percentage of people with income below the official threshold◦ Often differ sharply
by groups Race and ethnic origin Type of family Age Residence
The Poverty Rate
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Shifts in Family Structure◦ Single-parent (single mom)
Location Racial and Gender Discrimination Growth of Low-Skill Service Jobs Lack of Education
Causes of Poverty
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Income Inequality◦ Top 20% made 50% of the income in 2006◦ Bottom 60% only made about 26% in 2006
Income Gap◦ Factors
Differences in skills and education Inheritances Field of Work
Income Distribution
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The Earned Income Tax Credit (EITC)◦ Offsets the SS tax; earn based upon earned
income and number of qualifying children Enterprise Zones
◦ Companies can locate to be free of taxes and regulations (inner cities)
Employment Assistance Housing Assistance Welfare Reform
◦ Welfare to Workfare (work for your assistance)
Antipoverty Policies